A large part of our overall assessment revolves around risk management and a deep understanding of the importance of having a social licence to operate. To that end, Dundee Goodman Merchant Partners integrates all of the social issues (which have been defined by the industry as Environmental, Social and Governance issues), into our overall investment analysis and risk management strategy as part of our due diligence process. The management of ESG issues is critical when seeking the improvement of long-term returns.

Immediately following investment, portfolio companies are engaged and consistently monitored throughout the investment process. There is a strict expectation for responsible mining and ESG practices to be implemented into their business systems.

The United Nations-supported Principles for Responsible Investment (PRI) Initiative is an international network of investors working together to put the six Principles for Responsible Investment into practice. Its goal is to understand the implications of sustainability for investors and support signatories to incorporate these issues into their investment decision-making and ownership practices. Dundee Goodman Merchant Partners has examined these principles and is now a signatory.

Doing Well by Doing Good

  • We believe that ESG is a critical and an essential driver of our success
  • We believe all parties involved/impacted by a mining project must be on the same team
  • We believe that ESG integration optimizes social, financial, and reputational outcomes
  • We believe that our differentiator is how we optimize and manage the ESG process
  • We believe ESG to be a “must have” while others see it as a “nice to have” or a “flavor of the month”
  • We are a signatory of the United Nations Principles for Responsible Investing (PRI) and will only invest in assets with broad community support for the mining project, as well as adherence to the highest standards of Environmental, Social, and Governance (ESG) principles.

Why It Often Goes Wrong

  • Investee company management teams are often too inexperienced to effectively navigate the process
  • Industry promoters focus on the good news – reluctant to dive deep into the potential risks
  • Steps are skipped, de-risking is on autopilot, processes are not integrated

We See an Opportunity, Not a Risk

  • We fill in the technical and experience gaps that often exist at medium-to-smaller mining projects
  • We move from a conceptual/experience-based process to a full risk assessment
  • De-risking is a staging process with expertise and attention needed at each stage
  • We will not invest unless globally-recognized ESG standards are met